Audit 363933

SIGNIFICANT DEFICIENCY 2024-001 10.855 – Distance Learning and Telemedicine Loans and Grants – Procurement, Suspension, and Debarment Criteria or specific requirement Procurement methods should follow the requirements laid out at 2 CFR 200.320. Noncompetitive procurement methods should only be used if one of the following circumstances applies: the aggregate amount of the procurement transaction does not exceed the micro-purchase threshold; the procurement transaction can only be fulfilled by a single source; the public exigency or emergency for the requirement will not permit a delay resulting from providing public notice of a competitive solicitation; the recipient or subrecipient requests in writing to use a noncompetitive procurement method, and the Federal agency or pass-through entity provides written approval; or, after soliciting several sources, competition is deemed inadequate. Condition The County used a noncompetitive procurement method without receiving written approval or meeting one of the other allowable circumstances for a procurement that was greater than a micro-purchase but less than the simplified acquisition threshold. Context The County’s procurement policy allows for noncompetitive procurements in specified circumstances, including when the procurement is for services from a provider with unique knowledge, skill, or ability not available from other sources; when the procurement is for goods and services where standardization is beneficial for reasons including maintenance, repair, training, and inoperability; and when the procurement is for goods and services where continuity of providers’ efficiency or critical knowledge is preferable and other providers of the goods and services cannot provide similar efficiency or critical knowledge. County staff felt that they had sufficiently met these three circumstances, and they used that justification to proceed with a noncompetitive procurement. Cause The County was following its procurement policy and did not note that there were some key differences between it and when noncompetitive procurements are allowable when using federal funding. Effect The County did not allow for full and open competition. Recommendation Whenever possible, we recommend that the County request written permission from the awarding agency if it seeks to use noncompetitive procurement methods for grants. We also recommend that the County consider updating its procurement policy to make it clear that the circumstances in which noncompetitive procurements can be used with federal assistance differ from normal circumstances. Views of responsible officials See corrective action plan.

SIGNIFICANT DEFICIENCY 2024-001 10.855 – Distance Learning and Telemedicine Loans and Grants – Procurement, Suspension, and Debarment Criteria or specific requirement Procurement methods should follow the requirements laid out at 2 CFR 200.320. Noncompetitive procurement methods should only be used if one of the following circumstances applies: the aggregate amount of the procurement transaction does not exceed the micro-purchase threshold; the procurement transaction can only be fulfilled by a single source; the public exigency or emergency for the requirement will not permit a delay resulting from providing public notice of a competitive solicitation; the recipient or subrecipient requests in writing to use a noncompetitive procurement method, and the Federal agency or pass-through entity provides written approval; or, after soliciting several sources, competition is deemed inadequate. Condition The County used a noncompetitive procurement method without receiving written approval or meeting one of the other allowable circumstances for a procurement that was greater than a micro-purchase but less than the simplified acquisition threshold. Context The County’s procurement policy allows for noncompetitive procurements in specified circumstances, including when the procurement is for services from a provider with unique knowledge, skill, or ability not available from other sources; when the procurement is for goods and services where standardization is beneficial for reasons including maintenance, repair, training, and inoperability; and when the procurement is for goods and services where continuity of providers’ efficiency or critical knowledge is preferable and other providers of the goods and services cannot provide similar efficiency or critical knowledge. County staff felt that they had sufficiently met these three circumstances, and they used that justification to proceed with a noncompetitive procurement. Cause The County was following its procurement policy and did not note that there were some key differences between it and when noncompetitive procurements are allowable when using federal funding. Effect The County did not allow for full and open competition. Recommendation Whenever possible, we recommend that the County request written permission from the awarding agency if it seeks to use noncompetitive procurement methods for grants. We also recommend that the County consider updating its procurement policy to make it clear that the circumstances in which noncompetitive procurements can be used with federal assistance differ from normal circumstances. Views of responsible officials See corrective action plan.